Collier, Lee are lacking homes
JUNE FLETCHER | Naples Daily News
Southwest Florida needs to build more new homes to meet local job creation, a new report said.
After analyzing employment and permits, the National Association of Realtors concluded that there’s a shortfall of 13,609 new single-family homes in Cape Coral-Fort Myers, and a shortfall of 3,020 homes in the Naples- Immokalee-Marco Island metro areas.
Yet that pales in comparison with Florida metro areas such as Miami-Fort Lauderdale-West Palm Beach, which the trade group said had a deficit of 118,937 homes to meet the needs of newly hired workers, or Tampa-St. Petersburg-Clearwater, which had a shortage of 39,034 homes.
Using government statistics, the Washington, D.C.-based Realtor trade group analyzed permits and job creation in 117 metro areas nationwide to determine which places had the greatest shortage of new single-family homes.
The metro areas around New York, Dallas, San Francisco, Miami and Chicago topped the list.
Lawrence Yun, NAR’s chief economist, explained that the recession hurt the housing market by accelerating price growth and making it very difficult for buyers to afford a home — especially young adults.
“Without the expected pick-up in
building as job gains rose in recent years, new and existing inventory has shrunk, prices have shot up and affordability has eroded despite mortgage rates at or near historic lows,” he said in the report.
While building has been on fire in Southwest Florida since the recession ended, the 7,315 single-family permits pulled from 2013-15 in Collier County and the 9,462 pulled in Lee County were inadequate to meet the need, the NAR concluded.
That’s because Lee added 36,683 jobs during the period, and Collier added 16,433.
The ratio of employment over total permits was 3.9 for Lee County and 2.2 for Collier.
Historically, a balanced market has a ratio of 1.6, NAR said.
But 80 percent of markets in the country had a ratio higher than that, indicating they were not building enough homes to meet job creation.
Nationally, the average ratio was 3.4, but some places were much higher than that.
Double-digit ratios were found in 10 metro markets: Trenton, N.J. (25.1), San Jose (21), San Francisco (18.2), San Diego (12.3), New York (12.1), Rockford, Ill. (12.1), Miami (11.4), Reading, Pa. (10.3), Springfield, Mass., (10.2) and Hartford, Conn. (10.1).
Meanwhile, 30 markets had ratios below 1.6, indicating they were overbuilt. But only two had negative double- digit ratios: Danville, Ill., (-12) and Binghamton, N.Y. (-15.3) For home builders, the need to construct more housing is welcome news, even as the industry faces slowing demand in a nervous election year.
A separate report released Monday by the National Association of Home Builders said its index of builder confidence jumped 6 points to 65 in September, the highest level it has been since October.
The index shows builders are optimistic about sales even though they continue to be constrained by shortage of labor and lots, the NAHB said.
Naples, Fla. (September 16, 2016) – The housing market’s momentum continues to remain strong heading into fall. Upon reviewing the August 2016 NABOR Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), NABOR® broker analysts cited several reasons why buyers and sellers can expect a promising winter season such as the inventory is continuing to increase and the median closed prices are remaining virtually unchanged.
Overall activity of properties in the $2 million and above price category failed to perform as well in August compared to other price categories. However, condominium inventory in this luxury segment of the market increased 84 percent to 81 condominiums in August 2016 from 44 condominiums in August 2015, while its overall median closed price fell 19 percent (year over year) to $2,537,000 in August 2016 from $3,132,000 in August 2015. This behavior of increased inventory and lower prices primes the luxury segment of the market for a season where the number of properties priced right can certainly meet demand.
NABOR® broker analysts suspect some potential buyers of high-end properties may be reluctant to make big financial decisions because of the uncertainty of the economy after the Presidential election. However, as the report indicated, activity in this segment of the market is historically lower than it is during seasonal months. Brokers were quick to point out that this tapering is anticipated during the summer and expect sales in this segment to rise as we move into the next season.
The median closed price for condominiums in this entry-level price category was $193,000. August also saw a 50 percent increase in inventory for condominiums in the $300,000 and below price category to 974 condominiums in August 2016 from 648 condominiums in August 2015.
Overall inventory increased 36 percent for the second month in a row to 4,787 homes in August 2016 from 3,525 homes in August 2015. In fact, while inventory rose in all price categories for both home types, the overall median closed price remained flat in August, with the exception of homes in the $300,000 and below price category, which increased 9 percent to $210,000 in August 2016 from $192,000 in August 2015.
The NABOR® August 2016 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® August 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
|
CATEGORIES
|
August 2016
|
August 2015
|
CHANGE
|
| Total homes under contract (pending sales) |
734
|
811
|
-9%
|
| Total closed sales |
654 |
689 |
-5% |
| Median closed price |
$320,000 |
$306,000 |
5% |
| Total active listings (inventory) |
4,787 |
3,525 |
36% |
| Average days on market |
88 |
75 |
13% |
| Single-family closed sales |
350 |
348 |
1% |
| Single-family median closed price |
$384,000 |
$388,000 |
-1% |
| Single-family inventory |
2,554 |
2,025 |
26% |
| Condominium closed sales |
304 |
341 |
-11% |
| Condominium median closed price |
$232,000 |
$235,000 |
-1% |
| Condominium inventory |
2,233 |
1,500 |
49% |
Geographically, overall closed sales in East Naples increased 10 percent to 136 homes in August 2016 from 124 homes in August 2015. Also impressive was the 12 percent increase in single family closed sales in the East Naples area to 91 homes in August 2016 from 81 homes in August 2015, and a 72 percent increase in condominium inventory in North Naples to 639 condominiums in August 2016 from 371 condominiums in August 2015.
The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 5,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.
The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.
View August 2016 Market Statistics
Vacant homes in foreclosure decrease in Collier and Lee
JUNE FLETCHER | Naples News
The zombies are almost all vanquished in Southwest Florida.
A new report by Attom Data Solutions shows the number of vacant homes in the foreclosure process — known as zombie homes — fell to 13 in Collier County and 62 in Lee County in the third quarter.
In Collier County, the quarter-over quarter drop was 27.8 percent and year over- year decline 18.8 percent.
In Lee County, the declines were 7.5 percent from the previous quarter and 27.1 percent over the year.
Daren Blomquist, senior vice president of the firm based in Irvine, California, said the decline was partly the result of “banks cleaning out the bottom of the barrel when it comes to properties that have been lingering in the foreclosure process for years.”
Continuing demand and short supply of homes at the lowest prices also were factors, he said.
Overall, zombies made up 2.4 percent of the 540 homes actively in the foreclosure process in Collier and 5.9 percent of the 1,058 homes in foreclosure in Lee, the report said.
Nationwide, zombies made up 4.7 percent of properties in foreclosure, representing 18,304 homes. But as zombie homes go through foreclosure and return to lenders’ possession, they’re increasing the number of vacant bank-owned homes.
Across the U.S., 46,604 homes that have returned to banks were vacant, representing 15.8 percent of the total number of bank-owned homes.
In Southwest Florida a smaller percentage of homes were vacant when repossessed by lenders, the result of banks speeding foreclosures on their legacy distressed inventory to meet demand, Blomquist said.
In Collier, 28 homes, or 6.1 percent of the 460 bank-owned properties, were vacant.
In Lee, 107 properties had no occupants when returned to lenders, representing 7.9 percent of the county’s 1,360 bank-owned properties.
“Given the market conditions in Southwest Florida, I would suspect that these vacant bank-owned properties will sell fairly quickly, even if they are in poor condition,” Blomquist said.
With a small percentage of investment homes vacant in the third quarter, renters had to scramble, too.
Only 2,513 homes, or 2.6 percent, of the total number of Collier County’s investment properties were unoccupied.
In Lee, 3.1 percent, or 4,597 investment properties, were vacant.
Nationwide, 4.3 percent of the investment housing stock is vacant, representing slightly over 1 million homes.
Buyers Will Find More Homes for Sale This Summer
Naples, Fla. (June 17, 2016) – As predicted by the area’s leading broker analysts, activity in the real estate market for the month of May continued to follow a distinct and successive self-correcting path with areas of impressive growth and opportunity. Buyers and sellers alike will find the numbers encouraging. As identified in the May 2016 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), evidence of increasing consumer confidence is becoming more apparent as sellers returned to the market in May, resulting in a 37 percent increase in overall inventory.
May’s pending and closed sales activity also continued on a trajectory of improvement with a mere 6 percent and 5 percent decrease, respectively, as compared month to month over last year’s very strong results. As summer approaches, buyers will be happy to learn that median closed prices in May continued on the same trend seen in recent months, and remain steady in all price segments above $300,000 (12-months ending May 2016). The median closed price was $338,000 in May 2016 compared to $332,00 in May 2015.
“The properties selling now are homes by owners who have priced their properties realistically,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “These home sellers have either been watching the market closely themselves or, more likely, have an ally, like a REALTOR®, whose keen eye and experience is helping them price their home competitively to sell.”
There is good news for buyers who previously found it difficult to find a home to buy in our market. Several broker analysts remarked that median closed prices earlier this year were reflective of sellers “testing the ceiling.” But May’s 37 percent climb in inventory coupled with steady prices in most price segments indicates a stable and inviting market environment going into summer.
The report showed condominium inventory increased in every corner of Naples. In fact, there was a huge surge in May listings for condominiums in both the Naples Beach and North Naples areas. The rising inventory offers buyers a wider selection of homes this summer. There were 5,207 homes on the market for sale in May 2016 compared to 3,800 in May 2015.
The NABOR® May 2016 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® May 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
| CATEGORIES |
May-16 |
May-15 |
CHANGE |
| Total homes under contract (pending sales) |
921 |
977 |
-6% |
| Total closed sales |
838 |
1,010 |
-17% |
| Median closed price |
$338,000 |
$332,000 |
2% |
| Total active listings (inventory) |
5,207 |
3,800 |
37% |
| Average days on market |
73 |
75 |
-3% |
| Single-family closed sales |
396 |
430 |
-8% |
| Single-family median closed price |
$432,000 |
$427,000 |
1% |
| Single-family inventory |
2,744 |
2,168 |
27% |
| Condominium closed sales |
442 |
570 |
-22% |
| Condominium median closed price |
$276,000 |
$268,000 |
3% |
| Condominium inventory |
2,463 |
1,632 |
51% |
Additional activity of interest in the NABOR® May 2016 Market Report includes:
- Overall pending sales in the $300,000 to $500,000 price segment increased 1 percent to 258 in May 2016 from 256 in May 2015.
- Overall pending sales for single-family homes in the East Naples geographic area (34114, 34117, 34120, 34137) increased 14 percent to 129 in May 2016 from 113 in May 2015.
- Overall closed sales in the Immokalee/Ave Maria geographic area (34142) increased 26 percent to 48 homes in the 12-months ending May 2016 from 38 homes in the 12-months ending May 2015.
- Median closed price for condominiums in the $2 million and above price category decreased 19 percent to $2,275,000 in May 2016 from $2,800,000 in May 2015.
- Inventory for single-family homes under $300,000 decreased 5 percent to 291 homes in May 2016 from 307 homes in May 2015.
- Inventory for condominiums in the $1 million to $2 million price category increased 92 percent to 190 in May 2016 from 99 in May 2015.
- Inventory for condominiums in the Naples Beach geographic area (34102, 34103, 34108) increased 71 percent to 638 condominiums in May 2016 from 373 condominiums in May 2015.
- Inventory for condominiums in the North Naples geographic area (34109, 34110, 34119) increased 66 percent to 673 condominiums in May 2016 from 406 condominiums in May 2015.
- Average days on market for single-family homes in the $1 million to $2 million price category saw the largest decrease, 38 percent, to 81 days in May 2016 from 130 days in May 2015.
Contact David for information and listings of homes for sale in Naples – Bonita Springs – Marco Island, Florida.
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RISMEDIA, Saturday, May 28, 2016— Pending home sales rose for the third consecutive month in April and reached their highest level in over a decade, according to the National Association of REALTORS®. All major regions saw gains in contract activity last month except for the Midwest, which saw a meager decline.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, hiked up 5.1 percent to 116.3 in April from an upwardly revised 110.7 in March and is now 4.6 percent above April 2015 (111.2). After last month’s gain, the index has now increased year-over-year for 20 consecutive months.
Lawrence Yun, NAR chief economist, says vast gains in the South and West propelled pending sales in April to their highest level since February 2006 (117.4). “The ability to sign a contract on a home is slightly exceeding expectations this spring even with the affordability stresses and inventory squeezes affecting buyers in a number of markets,” he says. “The building momentum from the over 14 million jobs created since 2010 and the prospect of facing higher rents and mortgage rates down the road appear to be bringing more interested buyers into the market.”
On the topic of mortgage rates, which have remained below 4 percent in 16 of the past 17 months, Yun says it remains to be seen how long they will stay this low. Along with rent growth, rising gas prices – and the fading effects of last year’s cheap oil on consumer prices – could edge up inflation and push rates higher. For now, he foresees mortgage rates continuing to hover around 4 percent in the coming months, but inflation could potentially surprise the market and cause rates to increase suddenly.
Adds Yun, “Even if rates rise soon, sales have legs for further expansion this summer if housing supply increases enough to give buyers an adequate number of affordable choices during their search.”
Following the housing market’s best first quarter of existing-sales since 2007 (5.66 million) and a decent increase (1.7 percent) in April, Yun expects sales this year to climb above earlier estimates and be around 5.41 million, a 3.0 percent boost from 2015. After accelerating to 6.8 percent a year ago, national median existing-home price growth is forecast to slightly moderate to between 4 and 5 percent.
The PHSI in the Northeast climbed 1.2 percent to 98.2 in April, and is now 10.1 percent above a year ago. In the Midwest the index declined slightly (0.6 percent) to 112.9 in April, but is still 2.0 percent above April 2015.
Pending home sales in the South jumped 6.8 percent to an index of 133.9 in April and are 5.1 percent higher than last April. The index in the West soared 11.4 percent in April to 106.2, and is now 2.8 percent above a year ago.
“This report rounds out a triple crown of April home sales reports with existing home closings, new pending contracts, and new home sales all solidly up as the spring buying season ramped up,” says realtor.com chief economist Jonathan Smoke. “Across these metrics, the pace of total home sales is up more than 10 percent over last year, putting 2016 in the pole position to earn the standing of the best year in a decade.”
For more information, visit www.realtor.org.
Naples Real Estate: April Report Shows Real Estate Market in a Sweet Spot with More Choices & Steady Prices
Naples, Fla. (May 20, 2016) – As predicted by broker analysts in January, declines in home sales activity that appeared in the first quarter of 2016 were not a trend. This was further evidenced in the April 2016 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). In fact, the April report showed several signs that the Collier County residential resale market is a healthy, self-correcting machine that’s on a steady course to becoming even more balanced.
Rick Fioretti, NABOR® President and Broker Associate with Berkshire Hathaway Home said, “Closed sales have eased from April 2015 to April 2016 due to a leveling off of the market.”
Overall inventory increased 36 percent in April 2016 to 5,480 homes from 4,040 homes in April 2015. Most surprising was a 171 percent increase in inventory for condominiums in the $2 million and above price category, which resulted in 92 condominiums for sale in April 2016 from 34 condominiums in April 2015. Condominium inventory in the Naples Beach area also increased 73 percent to 683 condominiums in April 2016 from 394 condominiums in April 2015.
The NABOR® April 2016 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® April 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
- Overall pending sales decreased 10 percent to 1,084 in April 2016 from 1,210 in April 2015.
- Overall pending sales for homes in the $1 million to $2 million price category increased 4 percent to 93 homes in April 2016 from 89 homes in April 2015.
- Overall closed sales decreased 7 percent to 9,117 homes in the 12-months ending April 2016 from 9,856 homes in the 12-months ending April 2015.
- Closed sales of single-family homes in the $300,000 to $500,000 price category increased 26 percent to 881 single-family homes from 698 single-family homes in April 2015.
- Overall median closed price increased 11 percent to $314,000 in the 12-months ending April 2016 from $283,000 in the 12-months ending April 2015.
- Median closed price for single-family homes in the $300,000 and below price segment increased 25 percent to $227,000 in April 2016 from $182,000 in April 2015.
- Overall inventory increased 36 percent to 5,480 homes in April 2016 from 4,040 homes in April 2015.
- Inventory for condominiums in the $300,000 and below price category increased 33 percent to 1,181 condominiums in 1Q 2016 from 887 condominiums in the 1Q 2015.
- Inventory for condominiums in the Naples Beach area increased 73 percent to 683 condominiums in April 2016 from 394 condominiums in April 2015.
- Average days on market decreased 9 percent to 72 days in April 2016 from 79 days in April 2015.
Beside the Immokalee/Ave Maria area, inventories are the highest in the Naples Beach area, which saw a 47 percent increase in inventory to 1,276 properties in April 2016 from 868 properties in April 2015. The number of condominiums in this geographic area swelled impressively by 73 percent in April making it a buyer’s paradise once again.
